82R4303 ALL-F
By: Carona S.B. No. 981
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of distributed generation of
electricity.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Section 39.917 to read as follows:
Sec. 39.917. REGULATION OF CERTAIN DISTRIBUTED GENERATION.
(a) In this section:
(1) "Distributed generation" means electric
generation with a capacity of not more than 2,000 kilowatts that is
installed on a retail electric customer's side of the meter.
(2) "Distributed generation owner" means:
(A) the owner of distributed generation; or
(B) a retail electric customer who contracts with
another person to finance, install, or maintain distributed
generation on the customer's side of the meter, regardless of
whether the customer takes ownership of the installed distributed
generation.
(b) If, at the time distributed generation is installed on a
retail electric customer's side of the meter, the estimated annual
amount of electric energy to be produced by the distributed
generation is less than or equal to the customer's estimated annual
electric energy consumption, the commission may not consider the
distributed generation owner to be a power generation company or
require the distributed generation owner to register as a power
generation company.
(c) The commission may not consider a person who contracts
with a retail electric customer to finance, install, or maintain
distributed generation on the customer's side of the meter, as
described by Subsection(a)(2), to be an electric utility, a power
generation company, or a retail electric provider.
(d) The commission by rule shall provide for the
interconnection of distributed generation, including the sale of
surplus electricity generated by distributed generation
facilities.
SECTION 2. (a) The Public Utility Commission of Texas
shall conduct a study to determine the effect of net metering and to
assess and compare the effect of alternative:
(1) methodologies of determining a fair market value
or greater price for surplus electricity generated by distributed
renewable generation; and
(2) methods of compensating an owner for surplus
electricity generated by distributed renewable generation,
including a method by which a credit is applied to the owner's
account that may be redeemed on the owner's current or subsequent
bill.
(b) The methodologies assessed and compared in the study
conducted under Subsection (a)(1) must include methodologies by
which fair market value is based on:
(1) the local market clearing price for energy at the
time of day the surplus electricity is made available to the grid or
a monthly or longer proxy for the market clearing price; or
(2) avoided capacity costs, avoided transmission and
distribution costs, avoided system losses, avoided ancillary
service costs, hedging value, market price impacts, effects on
reliability, avoided air emissions, or any other factor effected by
the use of surplus electricity generated by distributed renewable
generation.
(c) The commission shall report its findings from the study
conducted under this section to the legislature not later than
September 1, 2012.
SECTION 3. This Act takes effect September 1, 2011.